Article · ~10 min read
A Better Way to Measure Customers' Willingness to Pay
Kellogg Insight · Kellogg Insight, Northwestern Free Intermediate
The gap between a big market and a paying market is willingness to pay, and this piece gives you a rigorous way to actually measure it. It moves you past asking would you pay, a question that flatters you, toward methods that reveal a real number. Use it to put a price test in front of your quiet market before you assume the gap is a gift.
- Stated interest overstates real willingness to pay
- Structured methods produce a defensible price a customer would actually accept
- A market only counts once someone will pay a real number
